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dsp73
3 years ago
5

On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne GmbH, a German corporation, f

or 200,000 euros. On July 19, Cologne paid Don in full. Relevant currency exchange rates were:
June 19 July 19
Spot rate $.988 $.995
30-day forward rate .990 1.000
What amount should Don record on June 19 as an account receivable for its sale to Cologne?
a. $197,600
b. $198,000
c. $199,000
d. $200,000
Business
1 answer:
nirvana33 [79]3 years ago
8 0

Answer: $197,600

Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:

200,000 euros @ .988

= $197,600

on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000

Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.

the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

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Answer:

The simple rate of return is 37.5%

Explanation:

Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:

<u>Total annual return - Depreciation expense</u>

                Initial capital outlay

For farmer Joe, the simple rate of return is:

<u>$20,000 + $25,000 + $30,0000 -$0</u>     x   100

                    $200,000

=   <u>$75,000</u>  x 100

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= 37.5%

Depreciation expense is assumed to be zero.

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3 years ago
Ok write your age and then multiple it by ten then divide it by your birth year
mixas84 [53]

Answer:

150 divided by 5 = 30

Explanation:

4 0
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A friend offers you a ticket to a Chicago Cubs baseball game for $40. You know you can sell the ticket to another friend for $50
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I hope my answer helps you

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On December 31, Briar Co. disposed of a piece of equipment that cost $6,000 with accumulated depreciation as of December 31 of $
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Gain/Loss on Asset Disposal is a common account name of the Equipment Disposal account.

The net difference between the initial asset cost and any cumulative depreciation (if any) is debited to the disposal account, while the balances in the fixed asset account and the accumulated depreciation are reversed.

On December 31, the debited amount is calculated as:

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Learn more about the depreciation, refer to:

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